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Atlatl Advisers LLC boosted its position in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 6,534.8% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 43,126 shares of the software maker’s stock after purchasing an additional 42,476 shares during the period. Fortinet makes up 1.8% of Atlatl Advisers LLC’s portfolio, making the stock its 11th biggest position. Atlatl Advisers LLC’s holdings in Fortinet were worth $7,709,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. MBL Wealth LLC increased its holdings in Fortinet by 363.0% during the 3rd quarter. MBL Wealth LLC now owns 8,612 shares of the software maker’s stock worth $1,539,000 after purchasing an additional 6,752 shares during the last quarter. Compass Wealth Management LLC acquired a new position in shares of Fortinet in the 3rd quarter valued at approximately $196,000. Howland Capital Management LLC boosted its stake in shares of Fortinet by 9.4% during the 3rd quarter. Howland Capital Management LLC now owns 7,443 shares of the software maker’s stock valued at $1,331,000 after buying an additional 639 shares during the last quarter. Brookstone Capital Management boosted its stake in shares of Fortinet by 102.1% during the 3rd quarter. Brookstone Capital Management now owns 14,647 shares of the software maker’s stock valued at $2,618,000 after buying an additional 7,400 shares during the last quarter. Finally, Cadinha & Co. LLC purchased a new position in shares of Fortinet during the 3rd quarter valued at approximately $215,000. 83.71% of the stock is owned by institutional investors and hedge funds.

More Fortinet News Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Jefferies expects Fortinet’s third-quarter product revenue growth to reach roughly 50% year over year, well above the 31% consensus forecast. The broker cited favorable industry checks, price increases and accelerated firewall replacement activity. Fortinet growth outlook for 2027 becomes key test for investors, says Jefferies Positive Sentiment: Investors are looking for another strong quarterly result, with analysts expecting double-digit year-over-year EPS growth. Fortinet’s ability to sustain product growth into fiscal 2027 will be the central focus of the earnings outlook. What to Expect From Fortinet’s Next Quarterly Earnings Report Positive Sentiment: Recent bullish positioning, including a previously raised $200 price target, reflects expectations for continued cybersecurity spending and AI-related demand. Fortinet’s hardware-software combination was also highlighted as a potential long-term competitive advantage. Fortinet versus Cisco and Palo Alto Networks Neutral Sentiment: Jefferies maintained a “hold” rating, emphasizing that forward guidance for 2027 matters more than simply beating near-term estimates. Fortinet trades at a premium valuation, increasing the importance of durable growth and strong cash generation. Neutral Sentiment: Fortinet released coordinated security-hardening updates for multiple products, which may have improved sentiment amid broader cybersecurity concerns, although the updates are not a major direct earnings catalyst. Negative Sentiment: JPMorgan raised its price target from $118 to $140 but retained an “underweight” rating, implying substantial downside from recent trading levels. JPMorgan Fortinet rating Negative Sentiment: Arete Research reportedly downgraded Fortinet to “sell,” adding to concerns that the stock’s elevated valuation already discounts much of its expected growth. Negative Sentiment: Reported insider activity shows executives made no open-market purchases and sold shares during the past six months, a potentially cautionary signal, though such sales may reflect scheduled diversification. Analysts Set New Price Targets FTNT has been the subject of a number of research analyst reports. Piper Sandler restated a “neutral” rating and issued a $175.00 price target (up from $110.00) on shares of Fortinet in a research note on Thursday, July 30th. Wells Fargo & Company increased their price objective on shares of Fortinet from $135.00 to $160.00 and gave the company an “underweight” rating in a research note on Thursday, October 15th. Jefferies Financial Group increased their price objective on shares of Fortinet from $165.00 to $190.00 and gave the company a “hold” rating in a research note on Thursday, July 30th. Mizuho set a $160.00 target price on shares of Fortinet and gave the stock an “underperform” rating in a research report on Thursday, October 15th. Finally, Morgan Stanley restated a “positive” rating and issued a $136.00 target price (up from $133.00) on shares of Fortinet in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty-one have assigned a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $162.36. View Our Latest Report on FTNT

Fortinet Stock Performance FTNT stock opened at $179.99 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32. The firm has a market cap of $132.06 billion, a P/E ratio of 63.38, a P/E/G ratio of 3.23 and a beta of 1.03. Fortinet, Inc. has a 12-month low of $73.55 and a 12-month high of $197.13. The stock’s 50 day simple moving average is $170.47 and its 200 day simple moving average is $146.08.

Fortinet (NASDAQ:FTNT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.15. The firm had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. Fortinet’s quarterly revenue was up 25.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.64 earnings per share. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, equities research analysts predict that Fortinet, Inc. will post 3.10 EPS for the current year.

Insider Activity at Fortinet In related news, CEO Ken Xie sold 161,482 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total transaction of $26,266,662.12. Following the completion of the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at $8,616,486,029.52. This represents a 0.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 53,865 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $165.44, for a total value of $8,911,425.60. Following the completion of the sale, the chief operating officer directly owned 96,987 shares in the company, valued at $16,045,529.28. This represents a 35.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 221,303 shares of company stock worth $36,164,034 in the last 90 days. 17.60% of the stock is currently owned by company insiders.

Fortinet Profile (Free Report)

Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company’s portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.

Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.

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The upcoming report from Fortinet (FTNT - Free Report) is expected to reveal quarterly earnings of $0.86 per share, indicating an increase of 16.2% compared to the year-ago period. Analysts forecast revenues of $2.06 billion, representing an increase of 19.5% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

In light of this perspective, let's dive into the average estimates of certain Fortinet metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus estimate for 'Revenue- Services' stands at $1.33 billion. The estimate suggests a change of +14.1% year over year.

Analysts expect 'Revenue- Product' to come in at $720.87 million. The estimate suggests a change of +28.9% year over year.

Analysts' assessment points toward 'Revenue- Services- Security subscription' reaching $770.45 million. The estimate points to a change of +14.7% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Services- Technical support and other' should come in at $572.35 million. The estimate indicates a year-over-year change of +16%.

Analysts predict that the 'Total billings (Non-GAAP)' will reach $2.30 billion. Compared to the current estimate, the company reported $1.81 billion in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Total deferred revenue' will likely reach $7.92 billion. Compared to the present estimate, the company reported $6.65 billion in the same quarter last year.

Based on the collective assessment of analysts, 'Gross profit- Product Non-GAAP' should arrive at $494.12 million. Compared to the present estimate, the company reported $380.60 million in the same quarter last year.

Analysts forecast 'Gross profit- Service Non-GAAP' to reach $1.16 billion. Compared to the present estimate, the company reported $1.03 billion in the same quarter last year.

The average prediction of analysts places 'Gross profit- Product' at $485.44 million. The estimate compares to the year-ago value of $378.60 million.

It is projected by analysts that the 'Gross profit- Services' will reach $1.15 billion. Compared to the present estimate, the company reported $1.01 billion in the same quarter last year.

View all Key Company Metrics for Fortinet here>>>

Shares of Fortinet have experienced a change of -3.2% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), FTNT is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Points:FTNT rebounds from $166.22 support.Bullish engulfing pattern signals renewed strength.Reclaims 50-day moving average near $170.Weekly trend channel reinforces support.Potential upside target at $197.13.Bullish Signals Emerge Above Key Support Fortinet, Inc. (FTNT), a cybersecurity company, remains in a strong bullish trend following a pullback to a new low of $166.22 on Wednesday. Buyers took back control from the low resulting in a three-day upside breakout above $171.31 and a reclaim of the 50-day moving average near $170. The day ended with a bullish engulfing candlestick pattern and a daily close above the 50-day moving average and the three-day high. Each sign adds to the bullish technical evidence. Successful tests of support during prior pullbacks also occurred near the same moving average, and a rally followed each time the average was reclaimed after a break below it.

FTNT daily chart shows strength at key support zone Weekly Chart Reinforces Support Confluence Moreover, support has been found near the initial high of the most recent consolidation base at $170.35. The confluence of support indicators near recent lows was followed by a bullish signal, suggesting that support has held and another leg up in the larger uptrend could begin. Also, the weekly chart adds to the significance of the support zone, as the pullback is testing support at the top boundary of a rising trend channel.

FTNT weekly chart shows long-term bullish channel breakout Breakout Risk Cuts Both Ways An upside breakout began around a month ago before FTNT hit a peak of $197.13 last week, which was followed by the pullback. If support at the prior resistance line continues to act as support, that will be a bullish indication on the weekly timeframe, suggesting a bullish bias on the daily chart. In addition, a break below the level would move the stock back inside the wedge, which could be followed by further downside.

Trend Channel Offers an Upside Target FTNT’s more recent advance has taken the form of a trend channel, with Wednesday’s low potentially marking the lower boundary of the channel, given the new bullish signs of strength. If the channel progresses an eventual test of resistance may occur near the upper boundary, with the recent peak of $197.13 representing a potential target.

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With over 20 years of experience in financial markets, Bruce is a seasoned finance MBA and CMT® charter holder. Having worked as head of trading strategy at hedge funds and a corporate advisor for trading firms, Bruce shares his expertise in futures to retail investors, providing actionable insights through both technical and fundamental analyses.

CINCINNATI--(BUSINESS WIRE)--CBTS, a leading North American technology services company, today launched CBTS Fortinet Managed Services. The new fully managed secure networking service helps mid-market and multi-site organizations modernize aging infrastructure, strengthen security, and support growth without adding network and security headcount. The mid-market network and security gap Mid-market organizations are caught between the sophistication of today's threats and the resources available.

CWA Asset Management Group LLC raised its stake in Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 126.9% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 102,596 shares of the software maker’s stock after buying an additional 57,379 shares during the period. CWA Asset Management Group LLC’s holdings in Fortinet were worth $18,340,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also recently modified their holdings of the company. Investment Research Partners LLC lifted its holdings in shares of Fortinet by 11.9% in the 3rd quarter. Investment Research Partners LLC now owns 2,475 shares of the software maker’s stock worth $442,000 after buying an additional 264 shares during the period. Maia Wealth LLC boosted its holdings in shares of Fortinet by 3.7% in the 3rd quarter. Maia Wealth LLC now owns 37,922 shares of the software maker’s stock valued at $6,779,000 after buying an additional 1,345 shares in the last quarter. Fairvoy Private Wealth LLC bought a new stake in shares of Fortinet in the 3rd quarter valued at about $1,190,000. Prairie Advisory LLC grew its position in shares of Fortinet by 100.0% in the 3rd quarter. Prairie Advisory LLC now owns 11,012 shares of the software maker’s stock worth $1,969,000 after buying an additional 5,506 shares during the last quarter. Finally, OceanIQ Capital LLC grew its position in shares of Fortinet by 16.4% in the 3rd quarter. OceanIQ Capital LLC now owns 11,901 shares of the software maker’s stock worth $2,270,000 after buying an additional 1,677 shares during the last quarter. Hedge funds and other institutional investors own 83.71% of the company’s stock.

Insider Activity In related news, VP Michael Xie sold 3,121 shares of Fortinet stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.63, for a total transaction of $507,568.23. Following the transaction, the vice president owned 9,918,360 shares in the company, valued at approximately $1,613,022,886.80. This trade represents a 0.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ken Xie sold 161,482 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the transaction, the chief executive officer directly owned 52,972,372 shares in the company, valued at $8,616,486,029.52. This trade represents a 0.30% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 221,303 shares of company stock worth $36,164,034 over the last ninety days. Corporate insiders own 17.60% of the company’s stock.

Analyst Upgrades and Downgrades A number of brokerages have recently issued reports on FTNT. BMO Capital Markets upped their price target on Fortinet from $170.00 to $185.00 and gave the stock a “market perform” rating in a research report on Thursday, July 30th. JPMorgan Chase & Co. raised their price target on shares of Fortinet from $100.00 to $118.00 and gave the stock an “underweight” rating in a research report on Thursday, July 30th. Roth Capital boosted their price objective on Fortinet from $90.00 to $110.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Bank of America reiterated a “buy” rating on shares of Fortinet in a research note on Monday, July 27th. Finally, Evercore set a $165.00 price target on Fortinet in a research report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twenty-one have issued a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, Fortinet currently has a consensus rating of “Hold” and a consensus price target of $160.92. Get Our Latest Stock Analysis on Fortinet

Fortinet Stock Up 1.4% NASDAQ FTNT opened at $171.50 on Tuesday. The business has a fifty day moving average price of $169.47 and a 200 day moving average price of $143.93. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.19 and a current ratio of 1.28. The company has a market cap of $125.83 billion, a P/E ratio of 60.39, a P/E/G ratio of 3.16 and a beta of 1.03. Fortinet, Inc. has a one year low of $73.55 and a one year high of $197.13.

Fortinet (NASDAQ:FTNT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software maker reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The company had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $1.89 billion. During the same quarter in the previous year, the company posted $0.64 EPS. The firm’s quarterly revenue was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Research analysts anticipate that Fortinet, Inc. will post 3.10 EPS for the current fiscal year.

Fortinet Company Profile (Free Report)

Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company’s portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.

Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.

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IFP Advisors Inc raised its position in Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 15.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 42,070 shares of the software maker’s stock after buying an additional 5,549 shares during the period. IFP Advisors Inc’s holdings in Fortinet were worth $7,520,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Fortinet during the 2nd quarter valued at about $9,561,650,000. Bank of New York Mellon Corp acquired a new position in Fortinet in the 2nd quarter worth about $1,432,842,000. Legal & General Group Plc acquired a new position in Fortinet in the 2nd quarter worth about $979,062,000. Arrowstreet Capital Limited Partnership raised its holdings in Fortinet by 87.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker’s stock worth $788,682,000 after purchasing an additional 4,500,194 shares during the period. Finally, Bank of America Corp DE purchased a new position in Fortinet during the second quarter worth approximately $656,852,000. Institutional investors and hedge funds own 83.71% of the company’s stock.

Insider Buying and Selling at Fortinet
In other news, COO John Whittle sold 2,835 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $168.74, for a total value of $478,377.90. Following the completion of the sale, the chief operating officer directly owned 96,987 shares in the company, valued at $16,365,586.38. This represents a 2.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 161,482 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 221,303 shares of company stock worth $36,164,034. Insiders own 17.60% of the company’s stock.

Wall Street Analysts Forecast Growth
Several analysts have commented on the company. Morgan Stanley reissued a “positive” rating and issued a $136.00 price objective (up from $133.00) on shares of Fortinet in a report on Thursday, July 30th. BTIG Research upped their target price on Fortinet from $186.00 to $203.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Sanford C. Bernstein reiterated a “market perform” rating and set a $145.00 target price (up from $102.00) on shares of Fortinet in a research report on Thursday, September 17th. Barclays set a $210.00 price target on shares of Fortinet and gave the company an “equal weight” rating in a research note on Monday, October 12th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $190.00 price target (up from $116.00) on shares of Fortinet in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-one have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, Fortinet currently has a consensus rating of “Hold” and an average target price of $159.09.
Read Our Latest Stock Report on FTNT

Key Stories Impacting Fortinet
Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Fortinet expanded its partnership with Atos to provide a unified cybersecurity framework for hybrid- and multi-cloud environments. The agreement could strengthen Fortinet’s enterprise reach and support demand for its security products and services. Fortinet Expands Global Cybersecurity Framework For Hybrid And Multi Cloud Security
Positive Sentiment: Growth-oriented analysis remains supportive, citing Fortinet’s above-average financial growth and its potential to outperform the broader market. Its latest reported quarter also showed strong earnings and revenue growth, providing a fundamental counterpoint to the current selling pressure. 3 Reasons Why Growth Investors Shouldn’t Overlook Fortinet
Neutral Sentiment: Wells Fargo raised its Fortinet price target from $135 to $160 but retained an “underweight” rating. The higher target is constructive, although it still implies limited upside relative to the stock’s recent trading level. Wells Fargo Lifts Target for Fortinet Stock
Negative Sentiment: Morgan Stanley downgraded FTNT to “underweight” from “equal weight,” warning that a smaller-than-expected firewall refresh opportunity could reduce future revenue estimates. This concern overshadowed the company’s continued customer expansion and has become the clearest company-specific catalyst behind the decline. Fortinet Falls as Analyst Downgrade Revives Firewall Refresh Concerns
Negative Sentiment: Fortinet’s premium valuation makes the stock vulnerable when growth expectations weaken. Broader weakness in technology and AI-related stocks, along with reports of net insider selling, added to investor caution ahead of the company’s October 28 earnings report.

Fortinet Stock Performance
Shares of NASDAQ:FTNT opened at $169.13 on Monday. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.28 and a quick ratio of 1.19. Fortinet, Inc. has a 1 year low of $73.55 and a 1 year high of $197.13. The firm has a market capitalization of $124.09 billion, a PE ratio of 59.55, a P/E/G ratio of 3.16 and a beta of 1.03. The business’s 50 day moving average price is $169.33 and its 200-day moving average price is $143.30.

Fortinet (NASDAQ:FTNT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, beating the consensus estimate of $0.75 by $0.15. The firm had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $1.89 billion. Fortinet had a return on equity of 191.54% and a net margin of 28.17%. The firm’s revenue was up 25.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.64 EPS. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, equities research analysts expect that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.

Fortinet Company Profile
(Free Report)

Fortinet, Inc develops cybersecurity products and services designed to protect networks, endpoints, applications, cloud environments and operational technology systems. The company’s portfolio includes next-generation firewalls, secure networking products, endpoint security, web application security, email security, identity and access solutions, and security information and event management tools.

Its product offerings include FortiGate network security appliances and cloud-based firewalls, along with FortiSwitch, FortiAP and FortiExtender solutions for secure connectivity.

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Barlow Wealth Partners LLC lowered its stake in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 11.8% in the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 138,986 shares of the software maker’s stock after selling 18,539 shares during the quarter. Fortinet makes up approximately 2.8% of Barlow Wealth Partners LLC’s portfolio, making the stock its 15th largest holding. Barlow Wealth Partners LLC’s holdings in Fortinet were worth $26,584,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of FTNT. Transamerica Financial Advisors LLC purchased a new position in Fortinet during the second quarter valued at $492,000. QRG Capital Management Inc. grew its stake in shares of Fortinet by 21.4% in the first quarter. QRG Capital Management Inc. now owns 75,491 shares of the software maker’s stock worth $6,169,000 after acquiring an additional 13,294 shares during the last quarter. Wealth Enhancement Trust Services Inc. grew its stake in shares of Fortinet by 83.8% in the third quarter. Wealth Enhancement Trust Services Inc. now owns 22,326 shares of the software maker’s stock worth $3,991,000 after acquiring an additional 10,180 shares during the last quarter. Vista Investment Partners LLC grew its stake in shares of Fortinet by 53.1% in the second quarter. Vista Investment Partners LLC now owns 49,058 shares of the software maker’s stock worth $7,537,000 after acquiring an additional 17,018 shares during the last quarter. Finally, Farther Finance Advisors LLC increased its holdings in shares of Fortinet by 35.5% during the third quarter. Farther Finance Advisors LLC now owns 32,402 shares of the software maker’s stock valued at $5,792,000 after acquiring an additional 8,488 shares in the last quarter. Hedge funds and other institutional investors own 83.71% of the company’s stock.

Insider Buying and Selling at Fortinet In other news, VP Michael Xie sold 3,121 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $162.63, for a total transaction of $507,568.23. Following the sale, the vice president owned 9,918,360 shares of the company’s stock, valued at $1,613,022,886.80. This trade represents a 0.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 53,865 shares of Fortinet stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $165.44, for a total transaction of $8,911,425.60. Following the completion of the sale, the chief operating officer owned 96,987 shares of the company’s stock, valued at $16,045,529.28. This represents a 35.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 221,303 shares of company stock worth $36,164,034. Company insiders own 17.60% of the company’s stock.

Fortinet Stock Performance Shares of FTNT opened at $181.91 on Friday. The business’s fifty day simple moving average is $169.14 and its two-hundred day simple moving average is $142.66. The company has a current ratio of 1.28, a quick ratio of 1.19 and a debt-to-equity ratio of 0.32. Fortinet, Inc. has a 12 month low of $73.55 and a 12 month high of $197.13. The company has a market cap of $133.47 billion, a price-to-earnings ratio of 64.05, a P/E/G ratio of 3.44 and a beta of 1.03. Fortinet (NASDAQ:FTNT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.15. Fortinet had a return on equity of 191.54% and a net margin of 28.17%. The business had revenue of $2.05 billion during the quarter, compared to analyst estimates of $1.89 billion. During the same quarter last year, the company earned $0.64 EPS. The company’s quarterly revenue was up 25.6% compared to the same quarter last year. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. Research analysts anticipate that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.

Fortinet News Summary Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Fortinet and Atos expanded their longstanding relationship into a global cybersecurity framework for hybrid- and multi-cloud environments. The arrangement combines Fortinet’s security products with Atos’ managed-security services and consulting, potentially broadening Fortinet’s enterprise reach and recurring services opportunity. Fortinet Expands Global Cybersecurity Framework Positive Sentiment: Recent commentary highlighted Fortinet’s SASE growth, rising services revenue and comparatively lower valuation versus Cloudflare, supporting the view that the company remains a long-term cybersecurity growth candidate. NET vs. FTNT Neutral Sentiment: Investor attention is also focused on upcoming earnings. Fortinet’s most recent reported quarter showed revenue growth and earnings above analyst expectations, although the stock’s elevated valuation leaves the market sensitive to any guidance or results that fall short of expectations. Fortinet Shares Jump with Earnings on Horizon Negative Sentiment: Wells Fargo raised its Fortinet price target but maintained an “underweight” rating; the new target remains below the stock’s current level, signaling concern that expectations may be too high. Negative Sentiment: Reports that OpenAI could acquire a cybersecurity startup pressured major cybersecurity stocks, including Fortinet. The possibility of a well-funded new competitor is raising concerns about future pricing, innovation and market-share dynamics across the sector. OpenAI Cybersecurity Deal Impacts Sector Wall Street Analyst Weigh In Several equities analysts have recently issued reports on FTNT shares. Morgan Stanley reaffirmed a “positive” rating and issued a $136.00 price target (up from $133.00) on shares of Fortinet in a research report on Thursday, July 30th. Scotiabank reiterated a “sector perform” rating and issued a $163.00 price target (up from $110.00) on shares of Fortinet in a research note on Thursday, July 30th. TD Cowen reissued a “buy” rating and set a $225.00 price objective (up from $215.00) on shares of Fortinet in a research report on Tuesday. The Goldman Sachs Group restated a “buy” rating and set a $190.00 price objective (up from $116.00) on shares of Fortinet in a research note on Thursday, July 30th. Finally, BMO Capital Markets raised their price objective on shares of Fortinet from $170.00 to $185.00 and gave the company a “market perform” rating in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-one have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $159.09.

Read Our Latest Stock Report on Fortinet

Fortinet Company Profile (Free Report)

Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.

Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.

Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.

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In the latest trading session, Fortinet (FTNT - Free Report) closed at $181.91, marking a -1.16% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.33%. Meanwhile, the Dow gained 1.08%, and the Nasdaq, a tech-heavy index, added 0.08%.

The network security company's stock has climbed by 7.15% in the past month, exceeding the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.

The upcoming earnings release of Fortinet will be of great interest to investors. The company's earnings report is expected on October 28, 2026. On that day, Fortinet is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 16.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.06 billion, up 19.58% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $8.12 billion, which would represent changes of +25% and +19.4%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Fortinet. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. Fortinet is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Fortinet is holding a Forward P/E ratio of 53.4. Its industry sports an average Forward P/E of 53.96, so one might conclude that Fortinet is trading at a discount comparatively.

Investors should also note that FTNT has a PEG ratio of 3.09 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Security industry was having an average PEG ratio of 3.11.

The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

FTNT is a cybersecurity company with AI-infused solutions including network security, networking, security operations, application security, operational technology, and more aimed at enterprises, communications providers, governments, and small- to medium-sized businesses. The company’s second-quarter fiscal 2026 earnings report showed $2.05 billion in quarterly revenue (a 26% year-over-year jump) with AI-related business growing 25%, non-GAAP per-share earnings of $0.90 (a 41% rise), and full-year guidance of up to $8.18 billion in revenue, which would be a 19% gain. FTNT reports again on Oct. 28.

It’s no wonder FTNT shares are up 140% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.

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Stock to Watch: Fortinet (FTNT - Free Report) Headquartered in Sunnyvale, CA, Fortinet, Inc. is a leader in cybersecurity, driving the convergence of networking and security. It provides integrated security solutions to enterprises, service providers and government entities across 100 countries.

FTNT is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. FTNT has a Growth Style Score of A, forecasting year-over-year earnings growth of 25% for the current fiscal year.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $3.45 per share. FTNT boasts an average earnings surprise of +20.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, FTNT should be on investors' short list.

Woodstock Corp lowered its position in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 3.8% in the third quarter, according to the company in its most recent filing with the SEC. The firm owned 223,138 shares of the software maker’s stock after selling 8,766 shares during the quarter. Fortinet comprises about 3.2% of Woodstock Corp’s portfolio, making the stock its 6th largest position. Woodstock Corp’s holdings in Fortinet were worth $39,888,000 at the end of the most recent reporting period.

Other institutional investors have also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Fortinet in the second quarter valued at approximately $9,561,650,000. First Trust Advisors LP increased its holdings in Fortinet by 45.5% in the 1st quarter. First Trust Advisors LP now owns 11,506,173 shares of the software maker’s stock worth $940,284,000 after buying an additional 3,598,487 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Fortinet by 87.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 9,651,024 shares of the software maker’s stock worth $788,682,000 after buying an additional 4,500,194 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in Fortinet during the 2nd quarter worth approximately $1,432,842,000. Finally, Legal & General Group Plc acquired a new stake in Fortinet during the 2nd quarter valued at approximately $979,062,000. 83.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Fortinet In other Fortinet news, CEO Ken Xie sold 161,482 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the sale, the chief executive officer directly owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This trade represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 53,865 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $165.44, for a total value of $8,911,425.60. Following the completion of the sale, the chief operating officer directly owned 96,987 shares in the company, valued at approximately $16,045,529.28. The trade was a 35.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 221,303 shares of company stock worth $36,164,034 in the last 90 days. Corporate insiders own 17.60% of the company’s stock.

Analyst Upgrades and Downgrades Several research firms have recently commented on FTNT. TD Cowen reaffirmed a “buy” rating on shares of Fortinet in a report on Tuesday. Robert W. Baird set a $165.00 target price on shares of Fortinet and gave the stock a “neutral” rating in a report on Thursday, July 30th. UBS Group restated a “neutral” rating and set a $180.00 target price on shares of Fortinet in a research report on Thursday, July 30th. Citigroup upped their price target on shares of Fortinet from $165.00 to $185.00 and gave the company a “neutral” rating in a report on Thursday, July 30th. Finally, Capital One Financial lifted their price objective on Fortinet from $150.00 to $185.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, twenty-one have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $156.51. Read Our Latest Stock Analysis on Fortinet

Fortinet Stock Performance Shares of NASDAQ FTNT opened at $192.94 on Tuesday. The company has a market capitalization of $141.56 billion, a PE ratio of 67.94, a price-to-earnings-growth ratio of 3.64 and a beta of 1.03. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.19 and a current ratio of 1.28. The company’s fifty day moving average price is $167.86 and its 200 day moving average price is $140.42. Fortinet, Inc. has a 1 year low of $73.55 and a 1 year high of $196.87.

Fortinet (NASDAQ:FTNT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.75 by $0.15. The company had revenue of $2.05 billion during the quarter, compared to analysts’ expectations of $1.89 billion. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The firm’s revenue for the quarter was up 25.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.64 earnings per share. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. On average, research analysts predict that Fortinet, Inc. will post 3.10 earnings per share for the current year.

About Fortinet (Free Report)

Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.

Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.

Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.

See Also Five stocks we like better than Fortinet Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment

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Terra Nova Asset Management LLC increased its stake in shares of Fortinet, Inc. (NASDAQ:FTNT – Free Report) by 24.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 14,599 shares of the software maker’s stock after purchasing an additional 2,865 shares during the quarter. Fortinet makes up approximately 1.8% of Terra Nova Asset Management LLC’s portfolio, making the stock its 19th largest position. Terra Nova Asset Management LLC’s holdings in Fortinet were worth $2,610,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Fermata Advisors LLC acquired a new position in Fortinet in the 3rd quarter valued at approximately $256,000. NorthCrest Asset Manangement LLC lifted its position in Fortinet by 5.3% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 51,747 shares of the software maker’s stock worth $9,785,000 after buying an additional 2,603 shares in the last quarter. Perpetual Ltd lifted its position in Fortinet by 2,214.9% in the 3rd quarter. Perpetual Ltd now owns 167,738 shares of the software maker’s stock worth $29,985,000 after buying an additional 160,492 shares in the last quarter. JGP Wealth Management LLC lifted its position in Fortinet by 1.7% in the 3rd quarter. JGP Wealth Management LLC now owns 15,206 shares of the software maker’s stock worth $2,718,000 after buying an additional 256 shares in the last quarter. Finally, Jacobs & Co. CA acquired a new stake in shares of Fortinet during the 3rd quarter valued at $223,000. 83.71% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets Several equities analysts have recently commented on the stock. William Blair restated a “market perform” rating on shares of Fortinet in a report on Tuesday, July 21st. Zacks Research upgraded Fortinet from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 14th. Jefferies Financial Group lifted their price objective on Fortinet from $165.00 to $190.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. Morgan Stanley reissued a “positive” rating and set a $136.00 price objective (up from $133.00) on shares of Fortinet in a research report on Thursday, July 30th. Finally, Roth Capital boosted their target price on Fortinet from $90.00 to $110.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, twenty-one have given a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $156.51.

Read Our Latest Stock Report on Fortinet Fortinet News Summary Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Barclays raised its price target from $190 to $210, signaling additional potential upside and reflecting continued confidence in Fortinet’s growth and profitability. Barclays raises target for Fortinet stock from USD 190 to USD 210 Positive Sentiment: Fortinet’s record margins, raised 2026 guidance and artificial-intelligence security initiatives support the company’s profitability narrative. Its most recent quarterly results also exceeded analyst expectations for earnings and revenue, with revenue growth of 25.6% year over year. Does Fortinet’s Strong Margin Profile Make the Stock Worth Buying Now? Positive Sentiment: Royal Bank of Canada increased its Fortinet price target from $185 to $205. Although RBC maintained a “sector perform” rating, the higher target indicates improved expectations for the shares. Fortinet Stock Price Target Raised at Royal Bank Of Canada Neutral Sentiment: Fortinet reached a fresh 52-week high, highlighting strong momentum, but analysts note that investors must assess whether its fundamentals justify further gains after the stock’s substantial 2026 advance. Fortinet Hits Fresh High: Is There Still Room to Run? Neutral Sentiment: Microsoft CEO Satya Nadella’s call for stronger AI safeguards produced little immediate reaction across cybersecurity stocks, limiting any near-term sector catalyst for FTNT. Microsoft CEO’s AI Warning Draws Little Reaction From Cybersecurity Stocks Negative Sentiment: Valuation and cost risks are becoming more important. FTNT trades near its high with a P/E ratio around 68, while rising chip costs and an unfavorable product mix could pressure margins. Investors with large gains across cybersecurity stocks may also take profits after the sector’s sharp rally. Cybersecurity stocks rally and profit-taking risks Insider Activity at Fortinet In related news, CEO Ken Xie sold 161,482 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the sale, the chief executive officer directly owned 52,972,372 shares in the company, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO John Whittle sold 2,835 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $168.74, for a total transaction of $478,377.90. Following the completion of the sale, the chief operating officer owned 96,987 shares of the company’s stock, valued at $16,365,586.38. This represents a 2.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 221,303 shares of company stock valued at $36,164,034. Insiders own 17.60% of the company’s stock.

Fortinet Price Performance NASDAQ FTNT opened at $192.94 on Tuesday. The company has a quick ratio of 1.19, a current ratio of 1.28 and a debt-to-equity ratio of 0.32. The stock has a market capitalization of $141.56 billion, a PE ratio of 67.94, a price-to-earnings-growth ratio of 3.64 and a beta of 1.03. Fortinet, Inc. has a 12-month low of $73.55 and a 12-month high of $196.87. The company has a 50 day moving average price of $167.86 and a two-hundred day moving average price of $140.42.

Fortinet (NASDAQ:FTNT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The company had revenue of $2.05 billion for the quarter, compared to analyst estimates of $1.89 billion. During the same quarter in the prior year, the business posted $0.64 EPS. Fortinet’s quarterly revenue was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. As a group, equities analysts predict that Fortinet, Inc. will post 3.10 earnings per share for the current fiscal year.

Fortinet Company Profile (Free Report)

Fortinet, Inc develops and provides cybersecurity products and services for businesses, governments, and service providers. The company’s portfolio is designed to protect networks, endpoints, applications, cloud environments, and operational technology from cyber threats.

Its offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiSASE secure access service edge solutions. Fortinet also provides centralized management and analytics through products such as FortiManager and FortiAnalyzer, along with security operations, threat intelligence, and other subscription-based services through its FortiGuard portfolio.

Founded in 2000, Fortinet serves customers globally through direct sales, channel partners, and managed security service providers.

See Also Five stocks we like better than Fortinet Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment

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Key Takeaways Fortinet's non-GAAP operating margin hit a record 38% in Q2 2026, while free cash flow reached $966M.Fortinet raised 2026 operating margin guidance to 35-37% and non-GAAP EPS guidance to $3.41-$3.47.FTNT's 33.7% GAAP operating margin outpaced CRWD's, despite product-mix pressure and rising memory chip costs.
Fortinet (FTNT - Free Report) is sharpening its AI security push, and the effort increasingly reinforces its margin narrative. In August, the company acquired Virtue AI, which adds runtime protection and automated validation for AI models, applications and autonomous agents to complement FortiAIGate. Fortinet said the amount paid was immaterial. In September, Fortinet was named a Leader in the 2026 Gartner Magic Quadrant for Hybrid Mesh Firewall. These moves build on the FortiGate 1200G with FortiSASE Outpost, which targets AI infrastructure requirements, and an Intel collaboration on its SP6 security processor.

Second-quarter 2026 results showed this momentum turning into profitability. Non-GAAP operating margin expanded to a record 38% from 33.1% a year ago, and GAAP operating margin rose to 33.7% from 28.1%. Product gross margin improved 2.4 percentage points to 69.8%, helped by recent pricing actions. Free cash flow reached $966 million, representing a 47.2% margin.

Guidance underlines the margin strength. For 2026, Fortinet now expects a non-GAAP operating margin of 35-37%, up from the earlier guidance of 33-36%, and a non-GAAP gross margin of 79-81%. Revenues are projected to be in the range of $8.02-$8.18 billion, implying 19% growth. Service revenue is expected at $5.18-$5.22 billion and billings at $9.35-$9.55 billion. Non-GAAP EPS guidance was raised to $3.41-$3.47 from $3.10-$3.16. For the third quarter, Fortinet expects revenues of $2.01-$2.10 billion, non-GAAP operating margin of 35-37% and non-GAAP EPS of 83-87 cents.

However, challenges persist. Total GAAP gross margin slipped to 80.2% from 80.7% as the revenue mix shifted 6.5 percentage points toward lower-margin product revenues, while memory chip costs rose. Service gross margin dipped slightly on data center expansion costs. Third-quarter operating margin guidance also implies a step down from the second quarter’s record level.

Overall, raised guidance, robust cash generation and AI-driven product momentum keep Fortinet’s margin profile attractive. Product-mix pressure and rising component costs, however, warrant close monitoring in coming quarters.

How FTNT’s Margins Stack Up Against PANW and CRWDFortinet’s margin profile compares favorably with Palo Alto Networks (PANW - Free Report) and CrowdStrike (CRWD - Free Report) , though both rivals continue to expand their top lines rapidly. Palo Alto Networks’ fiscal fourth-quarter 2026 revenues rose 34% to $3.41 billion, with non-GAAP operating income of $1.01 billion, implying a margin near 30%. For fiscal 2027, Palo Alto Networks expects a 29.5% non-GAAP operating margin and a 38% adjusted free cash flow margin. CrowdStrike’s second-quarter fiscal 2027 revenues grew 26% to $1.47 billion, while non-GAAP operating margin improved to 25% from 22%. However, CrowdStrike still reported a negative 2% GAAP operating margin, well below Fortinet’s 33.7%.

FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 144.7% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 117.6% and 23.5%, respectively.

FTNT’s Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 51.81, higher than the sector's average of 20.93. The company carries a Value Score of F.

FTNT’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.45 per share for 2026, which implies year-over-year growth of 25%.

Fortinet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A strong stock as of late has been Fortinet (FTNT - Free Report) . Shares have been marching higher, with the stock up 24.8% over the past month. The stock hit a new 52-week high of $194.95 in the previous session. Fortinet has gained 145.3% since the start of the year compared to the 23.7% move for the Zacks Computer and Technology sector and the 117.6% return for the Zacks Security industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2026, Fortinet reported EPS of $0.9 versus consensus estimate of $0.75.

For the current fiscal year, Fortinet is expected to post earnings of $3.45 per share on $8.12 in revenues. This represents a 25% change in EPS on a 19.37% change in revenues. For the next fiscal year, the company is expected to earn $3.85 per share on $9.08 in revenues. This represents a year-over-year change of 11.6% and 11.93%, respectively.

Valuation MetricsWhile Fortinet has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Fortinet has a Value Score of F. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 56.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 59.1X. On a trailing cash flow basis, the stock currently trades at 62.9X versus its peer group's average of 75.9X. Additionally, the stock has a PEG ratio of 3.27. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Fortinet currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Fortinet meets the list of requirements. Thus, it seems as though Fortinet shares could have a bit more room to run in the near term.

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Fortinet (FTNT - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Fortinet is a member of the Computer and Technology sector. This group includes 619 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Fortinet is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FTNT's full-year earnings has moved 10.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, FTNT has gained about 138.1% so far this year. In comparison, Computer and Technology companies have returned an average of 23.2%. This means that Fortinet is performing better than its sector in terms of year-to-date returns.

Another Computer and Technology stock, which has outperformed the sector so far this year, is Ambiq Micro, Inc. (AMBQ - Free Report) . The stock has returned 106.7% year-to-date.

The consensus estimate for Ambiq Micro, Inc.'s current year EPS has increased 31.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Fortinet belongs to the Security industry, a group that includes 9 individual stocks and currently sits at #109 in the Zacks Industry Rank. This group has gained an average of 108% so far this year, so FTNT is performing better in this area.

Ambiq Micro, Inc., however, belongs to the Electronics - Semiconductors industry. Currently, this 50-stock industry is ranked #105. The industry has moved +31.4% so far this year.

Fortinet and Ambiq Micro, Inc. could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.

Fortinet (FTNT +0.09%) is an cybersecurity stock to buy and hold as artificial intelligence (AI) tailwinds propel its business. Its 140% year-to-date return highlights growing demand for the stock as it continues to prove itself each quarter.

AI has provided a tailwind for many industries, but its impact on cybersecurity companies is only starting to be noticed. As agentic AI creates more data assets that must be protected while simultaneously producing more points of vulnerability, powerful new cybersecurity tools are needed. Here's why Fortinet is poised to shine in this shifting market.

Image source: Getty Images.

Fortinet combines growth and value Fortinet isn't the only cybersecurity stock benefiting from the AI trend, but it combines growth and value better than most of the competition. For instance, Fortinet's forward P/E ratio of 45 is much lower than CrowdStrike's (CRWD +0.43%) 208 or Palo Alto Networks' (PANW -0.38%) 94.

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Fortinet and CrowdStrike had nearly identical year-over-year revenue growth rates in their most recent quarters, while Palo Alto Networks was a little ahead of them.

In the second quarter, Fortinet's revenue was up by 26% year over year and beat the high end of guidance. It also raised its revenue guidance for the year by $175 million at the midpoint. But that's still a bit conservative, as it points to just 19% growth.

Where Fortinet operates in the AI cybersecurity trade Fortinet's software has automations that help it detect red flags and block unusual activity within seconds. The company uses AI to fight AI, and can prevent its clients' employees from using risky AI tools. It also has a chatbot to assist cybersecurity professionals and help them pinpoint vulnerabilities.

The company focuses more on cybersecurity for data centers, networks, and hardware. Its technology is directly embedded in key parts of AI infrastructure. That's a contrast to CrowdStrike, which operates more like software that protects an employer's laptops, smartphones, and other devices through the cloud.

Sometimes, Fortinet applies a physical chip or component that goes on AI infrastructure. At other times, Fortinet integrates its software deeply into hardware. For instance, Fortinet provides FortiGate-VM software that runs directly on Nvidia's BlueField-3 data processing units. The optimized virtual cloud firewall protects AI servers from hackers, even if the main server operating system gets compromised.

This approach lets data center providers maintain intense AI workloads without having cybersecurity drag on overall performance. It's foundational technology that makes it easier for AI to scale while remaining secure. As more data centers are constructed, more companies will have to turn to Fortinet's cybersecurity products and services.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Fortinet, and Nvidia. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

Key Takeaways CrowdStrike offers stronger growth, but its valuation remains extremely stretched. Fortinet combines positive EPS revisions with accelerating fundamentals and robust free cash flow.After extended YTD rallies, CRWD and FTNT have both hit fresh 52-week highs. Cybersecurity stocks continue to benefit from rising enterprise security spending as cloud adoption, artificial intelligence, and increasingly sophisticated cyber threats expand the need for protection.

CrowdStrike (CRWD - Free Report) ) and Fortinet (FTNT - Free Report) ) have been among the industry's strongest performers, with both stocks hitting fresh 52-week highs on Tuesday.

At these elevated levels, their growth outlooks, valuations, and earnings estimate trends can help determine which looks more attractive.

Image Source: Zacks Investment Research

CrowdStrike's Impressive GrowthCrowdStrike continues to build momentum across its cloud-native Falcon cybersecurity platform, with AI security, identity protection, cloud security, and next-generation Security Information and Event Management (SIEM) driving growth.

Most recently, Q2 revenue increased 26% year over year to $1.47 billion, while annual recurring revenue (ARR) rose 25% to $5.84 billion. More impressively, net new ARR jumped 51% to a record $333 million, prompting CrowdStrike to raise its full-year net new ARR growth outlook to roughly 34%.

The Zacks Consensus Estimate calls for CrowdStrike's current fiscal 2027 earnings to rise 35%, followed by a 28% increase in FY28 to $1.61 per share. However, EPS revisions have recently been relatively stagnant, while CRWD's valuation has become increasingly stretched following its massive rally.

Image Source: Zacks Investment Research

Fortinet's Fundamentals AccelerateFortinet's momentum has been driven by accelerating demand for its FortiGate firewalls, Secure Access Service Edge (SASE) offerings, and expanding AI-security portfolio as enterprises upgrade networks to handle increasingly complex workloads.

Second-quarter revenue surged 26% to $2.05 billion, with product revenue jumping 52% and billings rising 33%. Fortinet subsequently raised its 2026 revenue guidance to $8.02-$8.18 billion, representing roughly 19% growth at the midpoint. Notably, Fortinet's free cash flow more than tripled during Q2 to $966 million.

The Zacks Consensus Estimate calls for FY26 EPS to climb 25%, with 11% earnings growth projected next year to $3.85 per share. More importantly, FY26 and FY27 EPS estimates have each increased more than 1% over the past 30 days.

Image Source: Zacks Investment Research

Valuation Favors FortinetAlong with a more favorable trend of EPS revisions, valuation also favors Fortinet, with FTNT trading at 55X forward earnings, while CRWD trades at more than 200X. FTNT also trades at 17X forward sales compared to CRWD’s 47X.

Neither cybersecurity leader is cheap following a tremendous rally, but Fortinet’s forward P/E is roughly in line with the Zacks Security industry’s elevated average and its P/S ratio isn’t a far-stretched premium to its peers' average of 10X.

Image Source: Zacks Investment Research

Bottom LineCrowdStrike arguably offers the stronger pure-growth story, with Falcon Flex, AI security, and accelerating ARR providing plenty of long-term upside. That said, after CRWD's enormous rally, its premium valuation and muted earnings estimate revisions warrant more caution.

Keeping that in mind, Fortinet stock currently sports a Zacks Rank #2 (Buy), while CrowdStrike lands a Zacks Rank #5 (Strong Sell).

Combined with positive earnings estimate revisions, accelerating fundamentals, robust free cash flow generation, and a significantly lower valuation, Fortinet appears to be the more attractive cybersecurity stock near 52-week highs. In contrast, CrowdStrike's risk-reward profile appears less favorable at current levels.

Increasing agentic actions are increasing the demand for cybersecurity.

*Stock prices used were the afternoon prices of Oct. 1, 2026. The video was published on Oct. 3, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Artificial intelligence chips and data centers have captured a lot of attention, but cybersecurity stocks are also major beneficiaries of AI. As the build-out continues and more people use AI products and services, more points of vulnerability emerge. This larger surface area warrants more advanced cybersecurity resources to protect sensitive information from hackers.

Some investors have spotted the opportunity. CrowdStrike (CRWD +0.97%) and Fortinet (FTNT +1.76%) are two of the cybersecurity stocks that have more than doubled year-to-date. Here's why the current rally could continue.

Image source: Getty Images.

Physical AI can require cybersecurity for everyday products Cybersecurity isn't just for computers and keeping a hacker out of your bank account. Modern cars have built-in cybersecurity protections to mitigate risks. The National Highway Traffic Safety Administration said it is focused on strong cybersecurity to ensure that advanced driver assistance technologies are safe and work as intended. The agency also noted that these technologies increase vulnerabilities.

"Cybersecurity rose out of necessity to protect these systems and the information contained within them," it said in a report detailing vehicle cybersecurity.

That's important for physical AI. Alphabet's (GOOG +1.02%) (GOOGL +0.86%) Waymo is already conducting more than 500,000 paid rides per week with its robotaxis. Self-driving vehicles already exist, and they are gradually going mainstream. These cars require far more technology than regular vehicles, and that intensifies cybersecurity needs.

Humanoid robots, which could hypothetically perform all household chores in the future, also need cybersecurity software. Chinese robot maker X Square Robot recently hosted an event demonstrating the types of chores humanoid robots could perform, so it's no longer science fiction.

If physical AI grows as quickly as ChatGPT did in its early days, demand for cybersecurity should soar similarly.

AI also makes it much easier for hackers to infiltrate leaky systems CrowdStrike, Fortinet, and Palo Alto Networks all delivered strong earnings results, with accelerating revenue growth and mentions of artificial intelligence. They all cited AI as a key growth driver, but CrowdStrike CEO George Kurtz highlighted the "Mythos moment," which "translated into mass-market acceptance that AI adoption needs security."

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The dream scenario is that cybersecurity revenue accelerates quickly, as Google Cloud did, and the Mythos moment might justify it. This event refers to when Anthropic announced the Claude Mythos Preview. However, this new AI model was too powerful and could pinpoint thousands of cybersecurity vulnerabilities in an instant.

Naturally, that would be a hacker's dream, which explains why Anthropic held back from releasing the model. However, AI will continue to advance. It has many positive uses, but hackers can very easily get into systems with leaks. Quantum computing can make this feat even easier once the technology becomes commercially viable.

As AI scales and becomes more important for the economy and national security, businesses will require deeper investments in cybersecurity. This reality explains why cybersecurity stocks have been outpacing the broader market lately, and this tailwind doesn't seem likely to end anytime soon.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, CrowdStrike, and Fortinet. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

Fortinet built its own chips when rivals wouldn't, kept its founder at the helm, and sat through a brutal two-year slump that punished investors who blinked. Whether the stock's explosive comeback signals a new chapter or a valuation trap worth…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A Firewall Maker That Built Its Own Chips Fortinet (NASDAQ:FTNT | FTNT Price Prediction) protects corporate networks. Its main product is the FortiGate firewall. It sits between a company’s systems and the internet, checks the traffic that passes through, and stops attackers. The company has been public since its November 2009 IPO. It is still led by founder Ken Xie.

Over the past decade, Fortinet grew that firewall into a full platform. Everything runs on one operating system, FortiOS, and on custom FortiASIC chips that most rivals don’t make. Xie said on the July call: “Sometimes the payback may take 10 years, but we feel after 10 years we have a huge advantage.”

The company also added cloud-delivered security (SASE) and AI-driven security operations. It bought Lacework and Linksys along the way. Each hardware sale tends to bring recurring service subscriptions with it, and that helped push FY25 revenue to $6.80B with record free cash flow of $2.21B.

Your $1,000 Became $24,579 Prices are split-adjusted, covering a 5-for-1 split in 2022. The S&P 500 figures are price-only.

1-Year Return

Initial Investment: $1,000 Current Value: $2,097 Total Return: 109.7% S&P 500 (same period): $1,150.10 (15.01%) 5-Year Return

Initial Investment: $1,000 Current Value: $3,036.10 Total Return: 203.61% Annualized Return: 24.87% S&P 500 (same period): $1,772.40 (77.24%) 10-Year Return

Initial Investment: $1,000 Current Value: $24,578.90 Total Return: 2,357.89% Annualized Return: 37.74% S&P 500 (same period): $3,585.10 (258.51%) Fortinet beat the index over all three periods, but the five-year path was uneven. Shares sat at $59.60 in October 2021 and ended 2025 at just $79.41 after a slowdown in firewall upgrades during 2023 and 2024. Since then they’ve risen 127.87% year to date. Anyone who sold during the slump missed most of the five-year gain.

The catalyst was Q2 FY26. Product revenue rose 52% and billings climbed 33%. Management also raised full-year revenue guidance to $8.02B-$8.18B, driven by companies upgrading security for AI workloads and ransomware threats.

Valuation Now Runs Ahead of Analyst Targets The case for Fortinet today depends on whether the SASE firewall push and spending on AI data centers can keep product growth near current levels into 2027. The main risk is that this upgrade cycle fades the way the last one did.

Bull case: Non-GAAP operating margin reached 38%, FortiSASE billings grew over 100%, and Fortinet has beaten EPS estimates in six consecutive quarters.

Bear case: The stock trades at 63x trailing earnings, and at $180.95 it sits above the average analyst target of $164.32. Analysts lean cautious: 31 hold ratings against eight buys and one strong buy. Palo Alto Networks (NASDAQ:PANW), Zscaler (NASDAQ:ZS) and Cisco (NASDAQ:CSCO) are all competing for the same budgets.

The business looks stronger than the valuation. Fortinet earned its run, but after the stock more than doubled in a single year, the price already reflects much of that performance. Product revenue growth and billings against the raised guidance are the next figures to track.

Contact [email protected] for any questions or corrections.

 | Source: Fortinet, Inc.

SUNNYVALE, Calif., Oct. 02, 2026 (GLOBE NEWSWIRE) --

News Summary
Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, announced that it will hold a conference call to discuss its third quarter 2026 financial results on Wednesday, October 28, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time).

Fortinet's financial results conference call will be broadcast live in listen-only mode on the company’s investor relations website at http://investor.fortinet.com. While not required, it is recommended that you join at least 10 minutes prior to the event start.

The CEO’s and CFO’s prepared remarks, supplemental slides, and a call replay will be accessible from the Quarterly Earnings page on the Investor Relations page of Fortinet's website at https://investor.fortinet.com/quarterly-earnings.

About Fortinet
Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Over a million lifetime customers trust Fortinet's solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (CERTS), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com and https://www.fortinet.com/blog.

FTNT-F

Copyright © 2026 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiDAST, FortiDATA, FortiDB, FortiDevice, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHSM, FortiHypervisor, FortiIdentity, FortiInsight, FortiIsolator, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPhish, FortiPoint, FortiPoints, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSAT, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSOC, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, Intelligent Mesh, Velop, Max-Stream, Performance Perfected, and SECURITY FABRIC.

Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

Media Contact:Investor Contact:Analyst Contact:Tiffany CurciAnthony LuscriSarah GoodwinFortinet, Inc.Fortinet, Inc.Fortinet, [email protected]@[email protected]

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Fortinet (FTNT - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this network security company a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Fortinet is 42.7%, investors should actually focus on the projected growth. The company's EPS is expected to grow 24.1% this year, crushing the industry average, which calls for EPS growth of 12.2%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

Right now, Fortinet has an S/TA ratio of 0.74, which means that the company gets $0.74 in sales for each dollar in assets. Comparing this to the industry average of 0.46, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Fortinet looks attractive from a sales growth perspective as well. The company's sales are expected to grow 19.4% this year versus the industry average of 18.3%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for Fortinet. The Zacks Consensus Estimate for the current year has surged 0.8% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made Fortinet a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions Fortinet well for outperformance, so growth investors may want to bet on it.

Fortinet (FTNT - Free Report) closed the most recent trading day at $173.46, moving -2.92% from the previous trading session. This change lagged the S&P 500's 0.51% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.48%.

Coming into today, shares of the network security company had gained 3.41% in the past month. In that same time, the Computer and Technology sector gained 6.54%, while the S&P 500 gained 0.74%.

Investors will be eagerly watching for the performance of Fortinet in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.86, marking a 16.22% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.06 billion, indicating a 19.44% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $3.42 per share and a revenue of $8.12 billion, demonstrating changes of +23.91% and +19.37%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Fortinet. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.8% higher. Currently, Fortinet is carrying a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Fortinet currently has a Forward P/E ratio of 52.17. This denotes a discount relative to the industry average Forward P/E of 52.62.

We can additionally observe that FTNT currently boasts a PEG ratio of 3.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.16.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Fortinet, Inc. (NASDAQ:FTNT – Get Free Report)’s stock price hit a new 52-week high on Tuesday . The company traded as high as $177.25 and last traded at $174.4260, with a volume of 19005 shares. The stock had previously closed at $175.23.

Key Stories Impacting Fortinet Here are the key news stories impacting Fortinet this week:

Positive Sentiment: Strong operating results and outlook: Fortinet’s latest quarterly results exceeded expectations, with earnings per share of $0.90 versus the $0.75 consensus and revenue of $2.05 billion, up 25.6% year over year and ahead of the $1.89 billion estimate. The company also issued fiscal 2026 EPS guidance of $3.41 to $3.47. Fortinet Stock Surges to New Peak Amid Booming AI Security Demand Positive Sentiment: AI and platform demand are supporting momentum: Recent coverage points to accelerating demand for Fortinet’s integrated security platform, including products designed to protect expanding AI deployments and corporate attack surfaces. Cybersecurity is increasingly viewed as a mission-critical operating expense, which may support durable spending. Fortinet Stock Jumps on Security Platform Demand Positive Sentiment: Technical and investor momentum: FTNT has reached successive 52-week highs and has more than doubled over the past year. Its relative performance has attracted momentum investors, while analysts highlighting expected earnings strength and cybersecurity demand are reinforcing the bullish narrative. Fortinet Stock Surges to New Peak Amid Booming Cybersecurity Demand Neutral Sentiment: Favorable comparisons and recommendations: Commentary has described Fortinet as outperforming computer and technology peers, a potentially attractive growth-at-a-reasonable-price stock, and a stronger cloud-security value proposition than Datadog because of its cash flow, billings growth and valuation. These are analyst opinions rather than new company announcements. Fortinet vs. Datadog Negative Sentiment: Valuation and volatility remain risks: After the sharp rally, Fortinet trades at a premium earnings multiple, leaving the stock vulnerable to profit-taking or disappointment if growth slows. Shares also experienced modest declines in recent sessions, although no new fundamental deterioration was reported. Fortinet Stock Heads Into the Open After a Drop Wall Street Analyst Weigh In A number of research firms recently issued reports on FTNT. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $160.00 price objective on shares of Fortinet in a report on Thursday, July 30th. Evercore set a $165.00 target price on shares of Fortinet in a research report on Thursday, July 30th. Cantor Fitzgerald restated a “neutral” rating on shares of Fortinet in a research note on Monday, August 24th. Truist Financial set a $183.00 price target on shares of Fortinet and gave the stock a “buy” rating in a report on Tuesday, July 21st. Finally, Barclays set a $190.00 price objective on Fortinet and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, nineteen have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Fortinet presently has an average rating of “Hold” and a consensus target price of $152.79.

Check Out Our Latest Analysis on FTNT Fortinet Price Performance The firm’s 50 day moving average price is $160.87 and its two-hundred day moving average price is $131.24. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.28 and a quick ratio of 1.19. The stock has a market cap of $131.14 billion, a PE ratio of 62.94, a P/E/G ratio of 3.28 and a beta of 1.06.

Fortinet (NASDAQ:FTNT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software maker reported $0.90 EPS for the quarter, topping the consensus estimate of $0.75 by $0.15. Fortinet had a net margin of 28.17% and a return on equity of 191.54%. The company had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $1.89 billion. During the same period last year, the firm earned $0.64 EPS. Fortinet’s revenue for the quarter was up 25.6% on a year-over-year basis. Fortinet has set its FY 2026 guidance at 3.410-3.470 EPS and its Q3 2026 guidance at 0.830-0.870 EPS. On average, research analysts expect that Fortinet, Inc. will post 3.07 earnings per share for the current year.

Insider Activity In related news, COO John Whittle sold 53,865 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $165.44, for a total transaction of $8,911,425.60. Following the sale, the chief operating officer owned 96,987 shares of the company’s stock, valued at approximately $16,045,529.28. This represents a 35.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Ken Xie sold 161,482 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $162.66, for a total value of $26,266,662.12. Following the completion of the transaction, the chief executive officer owned 52,972,372 shares of the company’s stock, valued at approximately $8,616,486,029.52. This represents a 0.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 221,303 shares of company stock worth $36,164,034. 17.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fortinet A number of institutional investors and hedge funds have recently modified their holdings of the company. QRG Capital Management Inc. grew its stake in Fortinet by 12.7% during the second quarter. QRG Capital Management Inc. now owns 85,054 shares of the software maker’s stock valued at $13,066,000 after acquiring an additional 9,563 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in Fortinet by 681.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 40,608 shares of the software maker’s stock worth $6,238,000 after acquiring an additional 35,413 shares during the period. Andra AP fonden purchased a new stake in Fortinet in the 2nd quarter worth approximately $4,425,000. Security National Bank of SO Dak purchased a new stake in Fortinet in the 2nd quarter worth approximately $88,000. Finally, Revere Asset Management Inc bought a new position in Fortinet in the 2nd quarter valued at $9,968,000. 83.71% of the stock is owned by hedge funds and other institutional investors.

About Fortinet (Get Free Report)

Fortinet, Inc develops cybersecurity products and services designed to protect enterprise, small and midsize business, service provider, and government networks. Its portfolio covers network security, endpoint protection, cloud security, secure access service edge (SASE), security operations, and zero-trust access.

The company’s offerings include FortiGate next-generation firewalls, FortiSwitch secure networking switches, FortiAP wireless access points, FortiClient endpoint security, and FortiManager and FortiAnalyzer management and analytics tools.

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Key Takeaways Fortinet shares hit a 52-week high as demand grows for its unified security platform.Fortinet's Q2 billings rose 33%, while revenues grew 26% and product revenues surged 52%.Management raised 2026 guidance, citing confidence in sustained AI-driven security demand. Fortinet (FTNT - Free Report) shares climbed to a fresh 52-week high of $175.23 on Sept. 21, 2026, before closing at $172.78, up roughly 3% on the session, extending a rally built on accelerating demand for its unified security platform. The move reflects growing enterprise appetite for Fortinet's converged networking-and-security architecture at a time when organizations are racing to secure AI workloads alongside traditional infrastructure.

Recent platform expansions have reinforced that positioning. The company rolled out FortiSOC, a cloud-delivered security operations center that embeds agentic AI across SIEM, SOAR, threat intelligence and identity-detection functions, and extended FortiEndpoint with AI visibility, governance and data-loss-prevention capabilities delivered through a single agent and console. It also deepened its FortiAIGate integration with NVIDIA's accelerated computing stack to secure large language models, autonomous agents and Model Context Protocol deployments, positioning the company for enterprise AI-adoption spending rather than only conventional firewall refresh cycles.

That platform momentum is already visible in the numbers. In the second quarter of 2026, billings rose 33% year over year to $2.37 billion, revenues grew 26% to $2.05 billion, and product revenues surged 52% to $773 million, supported by strong FortiGate unit growth and higher average selling prices tied to AI-workload and operational-technology demand. Non-GAAP operating margin hit a second-quarter record of 38%, while free cash flow more than tripled to $966 million, a 47% cash-conversion margin on quarterly revenues. Encouraged by that breadth, management raised full-year 2026 guidance to $8.02-$8.18 billion (about 19% growth) for revenues, $9.35-$9.55 billion for billings, and $3.41-$3.47 for non-GAAP EPS, with operating margin projected at 35-37%.

Third-quarter guidance calls for revenues of $2.01-$2.10 billion. With infrastructure investment guided at $350-$550 million for the year, Fortinet signals confidence that current AI-driven security demand is structural rather than a single-quarter spike.

How Rivals ComparePalo Alto Networks (PANW - Free Report) and CrowdStrike (CRWD - Free Report) offer useful benchmarks for Fortinet's platform-driven growth. Palo Alto Networks has leaned on its AI-centric platform optimization strategy, with remaining performance obligations and next-generation security ARR expanding at double-digit rates as customers consolidate tools. CrowdStrike, meanwhile, has posted strong annual recurring revenue growth powered by its Falcon platform and expanding AI-driven modules, though both Palo Alto Networks and CrowdStrike trade at higher revenue multiples than Fortinet given their software-heavy, subscription-first models. Fortinet's hardware-and-software mix contrasts with Palo Alto Networks' and CrowdStrike's largely software-based approaches, giving investors different ways to gain cybersecurity-sector exposure.

FTNT’s Share Price Performance, Valuation & EstimatesFortinet shares have gained 120.7% in the year-to-date period, outperforming the Zacks Security industry and the broader Computer and Technology sector’s growth of 94.8% and 22.8%, respectively.

FTNT’s Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, FTNT appears overvalued, trading at a forward 12-month price-to-earnings ratio of 47.23, higher than the sector's average of 21.36. The company carries a Value Score of F.

FTNT’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Fortinet’s earnings is pegged at $3.42 per share for 2026, which implies year-over-year growth of 23.91%.

Fortinet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.